Chrysler in deal with Chinese firm

Chrysler has announced a deal with China's Great Wall Motor Company to study sharing technology, components and distribution.

The firm, the smallest of the three major US car manufacturers, is trying to expand sales in the fast-growing Chinese market.

It already has a deal with China's Chery Automobile to produce a low-cost model for sale under its Dodge brand.

Under the new agreement, Chrysler and Great Wall will look at ways to use each other's distribution networks and component and technology capabilities, Chrysler said.

The agreement "represents part of Chrysler's ongoing efforts to explore opportunities to expand the company's involvement in the development of China's auto industry, as well as growing Chrysler's global business through the right partnerships," Chrysler spokeswoman Shawn Morgan said.

The agreement comes as American car manufacturers look to China to drive sales at a time of slumping US demand.

China's own young but ambitious producers are looking at foreign partnerships to improve their technology and marketing.

Great Wall, based in Baoding, a city west of Beijing, is best known as a producer of SUVs and trucks but is expanding into cars.

Chrysler, in Auburn Hills, Michigan, says sales through the first five months of this year are down 19% from the same period last year.

The company has denied rumours it is close to seeking bankruptcy court protection.

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